European steelmakers are stepping up efforts to raise prices for the first quarter of 2027, supported by limited supply and reduced competition from imports. But weak demand, particularly in Northern Europe, is making price increases difficult.
Offers for hot-rolled coil for delivery in the first quarter of 2027 have risen to 790–800 euros per tonne. Conditions vary across regions: in Northern Europe, buyer resistance has led to a slight price decline, while limited availability in Italy has pushed recent transaction prices up to 750–760 euros per tonne ex-works. Whether the market will accept producers’ higher price targets will depend on end-user demand.
High energy prices and investment in decarbonisation remain serious challenges to the competitiveness of Europe’s steel industry. As noted in recent industry discussions, the shift to electric arc furnaces and hydrogen-based steelmaking requires not only investment in plants but also access to affordable low-carbon energy. Differences in energy supply conditions across regions could also affect where steel production is located in the future.
EU quotas, import duties and CBAM measures protect local producers from import competition. Nevertheless, weak demand across Europe calls into question the sustainability of price increases. Buyers are not expected to fully accept producers’ requests for price hikes of 100–150 euros per tonne under annual contracts for 2027.
As a result, the European market remains caught between price support from limited supply and weak demand. Buyers’ acceptance of producers’ price targets will depend on energy costs, import conditions and end-user demand.
Romanian market under pressure from logistics and CBAM
Romania’s steel market is facing greater difficulties than the EU market as a whole: the country relies on imports, while demand remains weak amid economic problems. The war in the Black Sea is disrupting maritime transport, and the cost of shipping cargo to the port of Constanta has risen significantly.
In addition to a weak economy, political uncertainty and difficulties securing financing pose further risks for 2027. CBAM costs have also yet to be fully reflected in prices. Smaller importers are particularly unprepared for the new requirements, while delays in verifying actual emissions are expected to increase costs.
Exporters are likely to announce price increases, but the Romanian market will accept them only if demand recovers. Under current conditions, the prospects for a near-term recovery in Romania’s steel market remain weak.
Author: SteelRadar editorial team
steelradar.com
